15.8.2025 09:00:00 EEST | VR-Yhtymä Oyj | Half Year financial report
VR's Half-year Report 1 January to 30 June 2025: Profitability remained strong in the second quarter
VR-Group Plc, Half-year Report, 15 August 2025 at 9.00 am EEST
In the second quarter, VR's profitability remained at a good level compared to the previous year. The business environment remained stable and travel volumes increased. Profitability was also supported by determined profit improvement measures in line with the strategy.
April-June 2025 (Q2):
- VR Group net sales decreased by -8.3% to EUR 309.3 (337.2) million. Net sales excluding the completed acquisition and divestment decreased by -5.1%, to EUR 297.8 million.
- Comparable operating result (EBIT) was EUR 36.7 (34.6) million or 11.9% (10.3%) of net sales.
- Operating result (EBIT) was EUR 51.7 (25.7) million, or 16.7% (7.6%) of net sales.
- Cash flow from operating activities was EUR 101.4 (67.3) million.
- The number of journeys on long-distance trains in Finland increased by 1.9% to 4.0 (3.9) million journeys.
- Railway transport volumes in freight traffic increased by 11.5% to 6.6 (5.9) million tonnes.
January-June 2025:
- VR Group net sales decreased by -2.6% to EUR 611.5 (628.1) million. Net sales excluding the completed acquisition and divestment increased by 0.6% to EUR 591.6 million.
- Comparable operating result (EBIT) was EUR 58.5 (17.5) million, or 9.6% (2.8%) of net sales.
- Operating result (EBIT) was EUR 75.6 (10.7) million, or 12.4% (1.7%) of net sales.
- Cash flow from operating activities was EUR 157.9 (102.4) million.
- The number of journeys on long-distance trains in Finland increased by 4.6% to 7.8 (7.4) million journeys.
- Railway transport volumes in freight traffic increased by 27.2% to 13.5 (10.6) million tonnes.
Key figures | 4-6/2025 | 4-6/2024 | 1-6/2025 | 1-6/2024 | 1-12/2024 | |
Net sales, M€ | 309.3 | 337.2 | 611.5 | 628.1 | 1,294.7 | |
Comparable EBITDA, MEUR* | 79.7 | 81.8 | 143.6 | 111.3 | 271.6 | |
% of net sales | 25.8 | 24.3 | 23.5 | 17.7 | 21.0 | |
Operating result (EBIT), MEUR | 51.7 | 25.7 | 75.6 | 10.7 | 76.1 | |
% of net sales | 16.7 | 7.6 | 12.4 | 1.7 | 5.9 | |
Comparable operating result (EBIT), MEUR* | 36.7 | 34.6 | 58.5 | 17.5 | 84.6 | |
% of net sales | 11.9 | 10.3 | 9.6 | 2.8 | 6.5 | |
Net profit/loss for the period, MEUR | 35.5 | 20.6 | 52.6 | 6.0 | 48.6 | |
Cash flow from operating activities, MEUR | 101.4 | 67.3 | 157.9 | 102.4 | 226.9 | |
Investments, MEUR | 54.9 | 66.4 | 93.0 | 120.1 | 234.1 | |
Capital invested at the end of the period, MEUR | 1,779.7 | 1,782.7 | 1,779.7 | 1,782.7 | 1,817.9 | |
Comparable return on capital employed (ROCE), %* | 8.2 | 8.3 | 7.1 | 2.5 | 5.2 | |
Comparable return on equity (ROE), % | 5.9 | 9.7 | 8.1 | 2.3 | 4.7 | |
Net interest-bearing debt at the end of the period, MEUR | 380.8 | 452.3 | 380.8 | 452.3 | 443.4 | |
Gearing, % | 29.9 | 37.0 | 29.9 | 37.0 | 35.1 | |
Employees on average, FTE | 7,526 | 8,213 | 7,426 | 8,200 | 7,919 | |
* VR Group presents comparable EBITDA and operating result (EBIT) as an alternative performance indicators. The aim of comparable performance indicator is to improve comparability between reporting periods. | ||||||
Comparable key figures are excluding items affecting comparability. These items are linked to unpredictable events of a significant nature that do not form part of normal day-to-day business, such as disposal gains and losses, impairments or impairment reversals, down-sizing of major units, change in non-recurring provisions or other major non-recurring costs or income. | ||||||
*Segment-specific comparable return on capital employed (ROCE) % is calculated using comparable operating result as the numerator. The segment-specific key figure differs from the group's key figures because VR does not report financial items on a segment basis | ||||||
This report is unaudited. | ||||||
The comparative figures in brackets refer to the corresponding time period in the previous year, unless otherwise stated. | ||||||
CEO Elisa Markula:
"Our profitability remained strong in the second quarter, supported by growing passenger volumes and a stable operational environment. Comparable net sales decreased by 5% due to the expiry of a few tendered traffic contracts. However, our comparable operating result remained at a good level, reaching EUR 36.7 (34.6) million. Our profit improvement measures were successful, and operational efficiency improved.
The number of journeys on domestic long-distance trains continued to grow during the second quarter, with more and more leisure travellers choosing the train. Net sales in long-distance traffic increased, boosted by our acquisition in Sweden. However, track works and traffic disruptions weakened profitability compared to the comparison period. In Finland, customer experience reached an excellent level, with an NPS of 56 (44).
VR City Traffic improved its comparable operating result in the second quarter, although the result remained negative due to the low profitability of older, long-term contracts. Revenue declined following the expiry of a few tendered traffic contracts. New contracts won in Sweden will begin later this year, supporting our strategic goal of profitable growth in the competitive Swedish market.
Transport volumes at VR Logistics increased by 12% in the second quarter. Profitability remained at the previous year's level, and comparable revenue increased by 5% year-on-year, despite growing market uncertainty towards the end of the quarter. We have continued our focused efforts to develop our services by improving delivery reliability, strengthening customer cooperation, and investing in low-emission solutions.
Our strategy focuses on profitability, growth, and building a value-driven culture. Our goal is to achieve EUR 250 million in profit improvement measures by the end of 2027. This will ensure our future competitiveness and enable nearly EUR 1 billion in rolling stock investments. We have progressed as planned with our profit improvement programme.
To enable future tendering of publicly funded passenger rail traffic in Finland, VR has established a rolling stock company for tendered rail traffic. The rolling stock currently used in this traffic, and owned by VR, will be transferred to this new company. The establishment of the rolling stock company is based on the Finnish Government Programme and the policy outlined by the Government's Economic Policy Committee, which VR has implemented in cooperation with the Ministry of Transport and Communications and the Prime Minister's Office's ownership steering. The company is expected to be fully transferred from VR to state ownership during 2025.
VR actively supports the promotion of competition in rail transport and is committed to building a sustainable and competitive transport system for the benefit of society as a whole. We continue to focus on our core business as a provider of passenger transport and rail logistics services. As part of this strategic direction, we continued the sale of station properties during the review period and have also sold used rolling stock to other operators in the industry.
Building a future-proof VR is our shared goal. We have already made significant progress and will continue this work together with all our personnel. A warm thank you to our employees for their valuable contribution. We also thank our customers for their trust and cooperation - together we are building a functional and competitive transport system that serves all of society."
Outlook for 2025
VR estimates that the Group's net sales in 2025 will decrease slightly compared to the previous year due to the sale of the road logistics business and the expired tendered traffic contracts in Sweden. The new tendered traffic contracts won in Sweden will not start until the end of 2025.
The Group's comparable operating result is estimated to improve compared to 2024. The outlook is subject to uncertainties in the business environment due to the general economic development.
This stock exchange release is a summary of VR's Half-year Report 1 January to 30 June 2025. The complete report is attached to this release.
VR-Group Plc
Contacts
- VR Mediadesk, +358 29 434 7123, viestinta@vr.fi
About VR-Yhtymä Oyj
At VR, we promote the responsible transport of the future. We are a passenger, logistics and maintenance service company owned by the Finnish state, and we increase the popularity of low-emission rail and city traffic. We ensure smooth daily travel in Finland and Sweden and act as a pillar of support for industry in Finland's logistics. In 2024, our customers made a total of 15.3 million journeys on long-distance trains with us in Finland, and we transported 23.2 million tonnes of goods by rail. Our net sales amounted to EUR 1,294.7 million and we employed approximately 8,400 top professionals. Further information: https://www.vrgroup.fi/en/
